EACC Clears KEMSA Suppliers to Receive Ksh2.9 Billion

The Kenya Medical Supplies Agencies headquarters in Industrial Area Nairobi.
The Kenya Medical Supplies Agencies headquarters in Industrial Area Nairobi.
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Individuals who supplied Personal Protective Equipment (PPE) to the Kenya Medical Supplies Authority (Kemsa) are set to be paid after being cleared by the Ethics and Anti Corruption Commission (EACC).

In a letter to the Director of Public Prosecutions (DPP) Noordin Haji, following investigations into the Covid-19 emergency equipment procurement, EACC cleared the suppliers, but indicted senior Kemsa officials.

Following President Uhuru Kenyatta's directive to the agencies to probe the Kemsa scandal, EACC investigated the case and presented findings to the DPP on October 22, 2020, after which the DPP returned the inquiry file for further probe. EACC concluded the investigations and resubmitted the findings as they indicated in a Gazette notice dated January 22, 2021.

A Kemsa warehouse in Nairobi.
A Kemsa warehouse in Nairobi.
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The commission indicted senior officials at Kemsa, leaving out the suppliers. This is set to give way for settling the stalemate experienced at Kemsa with regard to the payment of pending bills and the release of PPEs to county governments for the fight against Covid-19.

The Standard reported that out of the total Ksh7.6 billion worth of medical supplies, the authority had only paid Ksh4.7 billion shillings. This leaves a balance of about Ksh2.9 billion. 

In a quarterly report titled 'EACC/AT/INQ/25/2020 Inquiry Into Allegations of Irregular Procurement and Fraudulent Payments of Covid-19 Emergency Commodities' the commission bayed for the prosecution of six officials.

The officials included former Chief Executive Officer Jonah Manjari, his Personal Assistant, Director of Procurement Charles Juma and Director of Commercial Services Eliud Muriithi.

In the inquiry, the anti-graft agency stated that Kemsa exceeded its budget by about Ksh3.2 billion, subverting procurement laws and procedures along with the Public Finance Management procedures.

EACC noted that Kemsa had no mandate in employing the direct procurement method after alleging that the medical supplies were needed urgently and that suppliers issued with commitment letters failed to deliver in time.

Kemsa warehouse in Embakasi, Nairobi.
Kemsa warehouse in Embakasi, Nairobi.
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